Latin America advances inventory stockpiling in response to Trump’s tariffs
Latin American companies are advancing inventory stockpiling to seek to mitigate the impact of the Donald Trump administration's tariffs, considering that the extension for their implementation is about to expire
The extension for the tariffs imposed by Donald Trump is about to expire, and Latin American countries are advancing inventory stockpiling as a measure to mitigate the effect of this measure.
The United States tariffs are expected to have a strong impact on supply chains. Given this, companies in strategic sectors in countries such as Brazil, Mexico, Argentina, and Colombia have decided to advance purchases and fill their stocks to the maximum.
These nations are looking for a quick way to adapt to developments in global trade. “Companies are rushing to import everything they can,” Alejandro Arroyo Welbers, director of the International Trade and Regional Economies Program at Austral University in Argentina, told Bloomberg Línea.
According to the professor, companies are now “taking action to avoid impacts on the supply chain. Ports in China such as Shanghai, Ningbo, Shenzhen, and Qingdao are completely congested, just like in 2021,” during the COVID-19 pandemic.
Trump’s taxes are causing freight costs to escalate, both ocean and air, generating a chain of increases in final prices globally.
The new trade scenario is forcing companies to “value having an inventory filled to the rafters and even building one next door just in case, because the future is very uncertain.”
M.Pino
Source: bloomberglinea
(Reference image source: Kurt Cotoaga on Unsplash)
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